KINGSTON'S DOWNTOWN ENTERTAINMENT CENTRE IS HEADING FOR A CRUCIAL "VOTE OF CONFIDENCE" NEXT WEEK.
A FEW COUNCILLORS HAVE DRAFTED A MOTION THAT CALLS ON THE CITY TO PULL THE PLUG ON THE ENTIRE PROJECT.
THEY SAY THE MOTION, TO BE DEBATED ON TUESDAY, STEMS FROM THEIR FRUSTRATION OVER THE SLOW FLOW OF INFORMATION AND FUNDING.
THE STORY FROM NEWSWATCH'S CHRIS HARVEY. FIVE MONTHS INTO THE JOB, AND WORK CONTINUES ON THE DOWNTOWN SPORTS AND ENTERTAINMENT CENTRE.
BUT FOR HOW MUCH LONGER ??
SOME COUNCILLORS -- CLEARLY FRUSTRATED OVER THE RISING COST TO BUILD THE CITY'S FLAGSHIP ARENA -- ARE ABOUT TO INTRODUCE A MOTION TO TRY AND CANCEL THE PROJECT ALTOGETHER.
IT SEEMED TO CATCH THE MAYOR OFF GUARD.
HARVEY ROSEN:
"I DON'T KNOW WHERE YOU HEARD THAT. BUT I CAN'T COMMENT ONE WAY OR THE OTHER AT THIS POINT."
COUNCILLOR VICKI SCHMOLKA IS THE AUTHOR OF THE MOTION.
SHE SAYS THE POINT OF IT IS TO GENERATE DISCUSSION ABOUT THE FATE OF THE FACILITY.
VICKI SCHMOLKA:
"IT STARTED AT 28 MILLION DOLLARS. SUDDENLY IT'S AT 46 MILLION DOLLARS. ARE WE COMMITTED TO IT. SO THE REASON FOR THE MOTION IS TO SEE WHETHER WE'RE PREPARED TO BACK A PROJECT THAT REALLY IS RAISING SERIOUS CONCERNS IN THE COMMUNITY."
SHE AND OTHERS WANT SOME DETAILED ANSWERS ABOUT HOW THE PROJECT HAS BEEN MANAGED AND, PERHAPS MORE IMPORTANTLY, THE FLOW OF INFORMATION BETWEEN STAFF AND COUNCILLORS.
SEVERAL OF THEM HAVE COMPLAINED THEY NEW NOTHING ABOUT AN AUDIT DONE LAST FALL BY KPMG -- SUGGESTING PROBLEMS WITH CITY'S PROJECT MANAGEMENT TEAM, AND THAT THE COST WAS GOING TO RISE BY OVER 4 MILLION DOLLARS.
BILL GLOVER:
"THERE ARE THE APPEARANCES OF A COVER UP. THE KPMG REPORT ON THE LVEC REPEATED MANY OF THE FINDINGS AND PROBLEMS OF MANAGEMENT, LACK OF PROPER FINANCIAL INFORMATION AND SO FORTH, THAT THEY FOUND WITH THE GRAND THEATRE."
DURING THE NOVEMBER ELECTION CAMPAIGN -- WHEN THESE INTERNAL STUDIES WERE CONDUCTED, BUT NOT MADE PUBLIC -- MAYOR HARVEY ROSEN SAID KINGSTON WOULD BECOME THE LAUGHING STOCK OF THE PROVINCE IF IT TRIED TO PULL THE PLUG ON THE LVEC.
AS FOR THE LOOMING COST OVERRUNS, HE SAYS IT'S GOING TO BE A STRUGGLE RIGHT UNTIL THE DOORS ARE OPEN.
HARVEY ROSEN:
"THERE'S GOING TO BE UP AND DOWN THROUGHOUT THIS PROJECT, AND WE'RE JUST GOING TO HAVE GO YOU KNOW COME UP WITH THE , PROVIDE THE INTESTINAL FORTITUDE TO STICK IT OUT AND GET THIS JOB DONE."
THE STAFF RECOMMENDATION RELIES HEAVILY ON RESERVES TO MAKE UP THE SHORTFALL.
A FEDERAL GRANT OF 4 MILLION WOULD SOLVE THE LVEC'S CASH WOES -- BUT SO FAR, OTTAWA HAS NOT TAKEN ACTION ON A SOFT COMMITMENT IT MADE LAST MAY -- WHEN THE LVEC'S BUDGET AND LOCATION WERE FINALIZED.
AND BECAUSE THOSE APPROVALS HAPPENED LESS THAN ONE YEAR AGO, THERE ARE HINTS THE MAYOR COULD USE PROCEDURAL RULES -- TO DECLARE THE LVEC 'NON CONFIDENCE' MOTION OUT OF ORDER.
BILL GLOVER:
"IF THE PROJECT IS TO GO AHEAD, EVERYBODY, EVERYBODY HAS TO HAVE CONFIDENCE IN THE QUALITY OF THE INFORMATION AND THE QUALITY OF THE MANAGEMENT OF THE PROJECT."
THE DEBATE COMES DOWN TO THIS -- IS COST OF BAILING OUT OF THE LVEC CHEAPER THAN SEEING IT THROUGH ???
CHRIS HARVEY:
"GETTING OUT OF THE LVEC DEAL WON'T COME CHEAP. THE LATEST ESTIMATE FROM STAFF, ABOUT 16 MILLION DOLLARS, MOSTLY TAXPAYERS MONEY.
EXACTLY WHAT SOME COUNCILLORS DON'T WANT SPENT ON THE ENTERTAINMENT CENTRE.
CHRIS HARVEY, CKWS NEWSWATCH, KINGSTON
AS CHRIS MENTIONED, THE PENALTIES TO GET OUT OF THE LVEC DEAL WOULD BE SEVERE.
ACCORDING TO THE RECENT ESTIMATES -- AT LEAST 16 MILLION DOLLARS IN CANCELLATION FEES.
AND A TAX INCREASE TO COVER THAT.
THAT DOESN'T INCLUDE COMPENSATION FOR THE CONTRACTOR OR ANY LEGAL FEES.
THE CITY WOULD ALSO HAVE TO RETURN A PROMISED 4 MILLION DOLLARS PROVINCIAL GRANT.
AND IT PUTS A QUESTION MARK OVER THE FUTURE OF THE OHL'S KINGSTON FRONTENACS.
THE MOTION TO BAIL OUT OF THE PROJECT IS EXPECTED TO BE ON THE FLOOR AT COUNCIL, ON TUESDAY.